New NJ Law Requires Annual Audit Of Unspent Funds

A new law is aimed at making sure New Jersey spends taxpayers' money efficiently.

Assemblyman Eric Houghtaling says the legislation requires the state auditor to report annually to lawmakers on unspent funds in each state agency's account at the end of the previous fiscal year.

"This really identifies not only that we authorized money to be spent but how the money is being spent and if it's being spent wisely. And if at the end of the year we have some money that is not spent, the state will be able to use that money for other things."

Houghtaling isn’t sure how much of the allocated funds might be sitting idle.

"It's possible that we might be able to find some money and how tight money is in the state of New Jersey we need every dollar that we can get our hands on."

The auditor's report must include recommendations for addressing the accumulation of the unspent balances to avoid waste, fraud, or mismanagement.